Govt enhances loan limit for MSMEs to over Rs 1 crore under PMEGP

New Delhi, Oct 3 (KNN) In a bid to strengthen MSME credit growth, the central government has enhanced the loan limit to over Rs 1 crore for Micro, Small and Medium Enterprises (MSMEs) under the Prime Minister Employment Generation Program (PMEGP).

Speaking about this move, MSME Minister, Giriraj Singh said “the government was lending between Rs 25 lakh and Rs 1 crore to successful entrepreneurs at 15 per cent interest subsidy but such entrepreneurs can now apply for loan over and above the limit.”

Inaugurating a month long ‘Khadi Fest 2018’ on the birth anniversary of Mahatma Gandhi in Mumbai, he dedicated an online portal for entrepreneurs to seek financial assistance and emphasized on the government’s aim to generate employment in rural India.

To popularize khadi, he said the Khadi and Village Industries Commission (KVIC) has held global exhibitions of its products since August 15.

“Our aim is to generate employment. We do not focus on profits but promote social welfare by bringing women entrepreneurship in rural India,” he added.

Putting much importance to the rural development through ‘charkha’, ‘cow dung’ and ‘cow urine’, the Minister said “We expect every (gram) panchayat to generate Rs 100 million per annum from ‘charkha’ and Rs 150 million from household articles made of cow dung and urine. These Rs 250 million per annum revenue earned by every panchayat will help India achieve enormous rural economic growth.”

KVIC Chairman Vinai Kumar Saxena said that in 2017-2018, its turnover grew by 34 per cent to Rs 25.08 billion.

Encouraged by the innovative initiatives taken by the government to promote ‘khadi’ clothes and household articles, KVIC has set a sales target of Rs 32 billion for the current financial year.